In the current study, we propose a simple hydrothermal pathway to synthesize nano-structured Mg(OH)2 after application of thermal decomposition followed by hydration of commercial minerals based on hydromagnesite and huntite. The synthesis of nano-materials is performed without the use of any catalyst. The effect of decomposition temperature on the hydrothermal synthesis of Mg(OH)2 is extensively studied. It is shown that the morphology of resulting structures consists typically of particles ~200 nm in diameter and ~10 nm in thickness. Study of the structure at the molecular level designates the composition and supports the nano-sized characteristics of the produced materials. The associated thermal properties combined with the corresponding optical properties suggest that the material may be used as a flame retardant filler with enhanced transparency. In this concept, the flame retardancy of composite coatings containing the produced nano-sized Mg(OH)2 was examined in terms of limiting oxygen index (LOI), i.e., the minimum concentration of oxygen that just supports flaming combustion.